3
3 Co-movement of GDP Growth in the Asia, US, and EU Current and Forecast by IMF Source: CEIC

4
4 Changing Asia in Regional and Global Dynamics: Crisis is Redrawing the Map of Asias Global Economic Influence A multi-polar economy less reliant on the US consumers will be a more stable economy (Zoellick) Crisis has accelerated a shift from west to east Major emerging economies like China and India take the lead and are becoming real partners Would the world now start to rebalance towards Asia?

5
5 Changing Asia in Regional and Global Dynamics: Asias Role in the Global Economy Asias Seat at the Table of G-20 Growing recognition in the core economic discussion and governance like, the World Bank, WTO and the IMF US dollar under scrutiny with an increasing weight of Asian currencies Crisis might happen again and Asia is still part of the global imbalances (Bernanke)

8
8 Strong Foreign Reserves in Asia as compared to other developing countries Reserve Pooling is a sound suggested option The question is how to implement it

9
9 Changing Asia in Regional and Global Dynamics: New Emphasis on Regional Strategy Crisis proved Asia not decoupled Debate on export-led growth model More focus on regional final demand rather than solely on regional production networks Potential rise in per capita income in all emerging Asian economies

11
11 Moving into Asian Regionalism: At the Beginning East Asia,for long, an Empty Box Preferences of multilateralism ASEAN AFTA, the only RTA in operation Increasing cooperation and integration since the Asian financial crisis of 1997-98

13
13 Moving into Asian Regionalism: ASEAN Economic Community AEC Blueprint (2009-2015) AEC based on single market and productive base Also aims for competitive economic region, equitable economic development and integration into the global economy Roadmap for an ASEAN Economic Community Implementation, hardest part (AEC Scorecard)

14
14 Moving into Asian Regionalism: ASEAN-China FTA Signed in November 2004 Nation-specific sensitive lists & conditional MFN, so de facto 10 bilaterals Tariff cutting started mostly mid 2005 to zero by Jan 1 st, 2010 for 90% of Products From goods to investment and services

15
15 Moving into Asian Regionalism: ASEAN-Japan FTA Japan-Singapore was signed in 2002 –Different agreement to AFTA and ACFTA, reads like European & US FTAs, more structured Japan-Malaysia signed Dec 2005 Soon with Indonesia, Thailand, the Philippines, Vietnam and Brunei In parallel, AJFTA with ASEAN as a whole from 2008 Tariff cutting, to zero by 2012

16
16 Moving into Asian Regionalism: ASEAN-ANZ FTA Similar to Japan-ASEAN FTA, much structured an broadened In parallel with bilaterals, like Thailand- AWZ, starting in 2005. Tariff cutting starting in 2009 to zero in 2015

17
17 Moving into Asian Regionalism: Latest initiatives of AKFTA, AIFTA Similar to AC FTA, but more political difficulties, started later De facto 10 bilaterals in 2008 (AKFTA) Tariff cutting to start in 2010 (AIFTA) Investment agreement concluded for AKFTA, to include services as well More negotiations needed for ASEAN- India investment and services agreements

24
24 Institutionalizing Asian Regionalism: Needs for Broader Regional Cooperation Market dynamics and increasing role of East Asia Consolidation of various initiatives Immediate concern, overlapping FTAs Institutionalizing possibilities, tremendous, but also to be realistic.

25
25 Institutionalizing Asian Regionalism: EAFTA Phase I Leaders put EAFTA on the economic cooperation agenda during the 10 th ASEAM+3 Summit EAFTA process to process within ASEAN+3 framework EAFTA to be of high quality Economic cooperation along with EAFTA

26
26 Institutionalizing Asian Regionalism: EAFTA Phase II Leaders put EAFTA as an important initiative during the 13 th ASEAN+3 Summit Gradual and realistic strategy be pursued to achieve a desirable and feasible EAFTA Consolidating existing FTAs Working groups on (1) unified ROOs and (2) tariff nomenclature and other customs-related issues Negotiations to be launched by 2012, at the latest

27
27 Institutionalizing Asian Regionalism: CEPEA Phase I Objectives and structure to be composed of 3 pillars –economic cooperation –trade and investment facilitation –trade and investment liberalization Discussion to be commenced among officials on cooperation and facilitation Necessary decision to be made regarding on FTA Mechanism to be developed for the private sector

28
28 Institutionalizing Asian Regionalism: CEPEA Phase II Objectives and structure reaffirmed by leaders Study and discusses on –concrete steps to realize CEPEA –comprehensive framework that includes cooperation, facilitation and liberalization, and to be commenced immediately among officials.

30
30 Institutionalizing Asian Regionalism: ASEANs Centrality Role of ASEAN in the ASEAN+3 and ASEAN+6 ASEANs in the drivers seat? Blocs top-down, whats about bottom-up? Upcoming challenges: Whos in or out?

31
31 Institutionalizing Asian Regionalism: Latest Initiatives Leaders accepted both EAFTA and CEPEA initiatives, still to be decided how to proceed In addition, more proposals added at the 4 th East Asia Summit –East Asia Community by Japanese PM Hatoyama –Asia-Pacific Community by Australian PM K. Rudd